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Obama Picks: Fund expert's top ETFs

Steven Halpern — Wed, 05 Nov 2008 14:00:00 EST

Filed under: Newsletters, Mutual Funds, Presidential Elections, Commodities, Oil, Agriculture, Stocks to Buy, Green Stocks, Obama Picks

What sectors are poised to outperform as a result of a Barack Obama presidency? To find out, we turn to fund expert Jim Lowell who recent prepared a report highlighting the top ETFs based on each candidate.

In The Forbes ETF Trader, he offers several top picks including ETFs that are focused on biotechnology and medical research, industrials, clean environment and clean energy technologies.

"SPDR Biotech (ASE: XBI) seeks investment results that correspond to the price and yield performance of the S&P Biotechnology Select Industry Index which is made up of the biotechnology sector of the S&P Total Markets Index.

"It began trading in January 2006. The top ten holdings are Genentech, Amgen, Gilead Sciences, Celgene, Genzyme, Biogen Idec, Imclone, Cephalon, Vertex Pharmaceuticals, and Alexion Pharmaceuticals.

"Vanguard Industrials (NYSE: VIS) seeks investment results that correspond to the price and yield performance of the Morgan Stanley Capital International US Investable Market Industrials Index.

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Obama Picks: Fund expert's top ETFs originally appeared on BloggingStocks on Wed, 05 Nov 2008 14:00:00 EST. Please see our terms for use of feeds.

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Global Q&A: Opportunity in the energy sell-off

Nancy Zambell — Wed, 10 Sep 2008 17:40:00 EST

Filed under: Russia, Oil

I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke with Sam Hopkins, editor of Energy and Capital, who despite the recent sell-off in energy, sees potential in energy.

Q. Sam, in a recent piece on the Russia/Georgia conflict, you cautioned your subscribers to watch their Russian shares closely, but to hold onto their energy shares. Would you expand on that advice?

A. Well, we see a mix of geopolitical risk and opportunity in the flare-up between Russia and Georgia. Ironically, the opportunity for energy investors comes from the risk itself. It's hard to put your finger on exactly how much the "risk premium" in a barrel of oil is (meaning, what dollar amount is priced in to accommodate for pipeline leaks, theft, war, or other factors that can affect supply). But what we do know is that in Russia's case, as one of the world's top producers of hydrocarbons, national oil and gas companies stand to gain when futures prices rise. In this way, Russian energy stocks like Gazprom (OTC: OGZPY) and Rosneft (OTC: RNGZY), both of which trade in London and here on the Pink Sheets, may gain even while the broader Moscow market turns downward.

Q. Many investors may view this conflict as an example of why international markets may be too risky for their money. After all, the Russian stock market - the RTS - has fallen about 20% in the past month. Will you share your thoughts on why investors need to diversify abroad?

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Global Q&A: Opportunity in the energy sell-off originally appeared on BloggingStocks on Wed, 10 Sep 2008 17:40:00 EST. Please see our terms for use of feeds.

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How to play Congress' environmental policymaking

Kevin Kelly — Mon, 23 Jul 2007 21:17:00 EST

Filed under: Rumors, Politics, Oil

Despite a seemingly unanimous support for environmental matters from the Democratic party, there are still divisions inside the party on how to go forward. According to a Wall Street Journal article [subscription required], the sharpest inter-party divisions exist on the issue of fuel-economy standards.

Interestingly, it seems like everyone in the party agrees fuel-economy standards need to be increased, the issue is when and how fast. Automakers, especially U.S.-based, would stand to suffer if fuel-economy standards are quickly increased for obvious reasons such as making it more costly to produce cars -- a factor that American automakers would probably prefer not to deal with in their current situations.

Fuel-economy standards are certainly not the only issue at hand. Last week, House speaker Nancy Pelosi agreed to mandating utilities to begin using more renewable fuels. And like I covered in this post, I think the ethanol mandate is going to be increased in the next environmental bill.

All this being said, I think the most interesting way to play the environmental boom in America is through a basket of stocks. One specific stock I like for the environmental bill is Pacific Ethanol Inc (NASDAQ: PEIX), a thesis I covered here.

If you don't have time to do research on all the different companies in this interesting sector, I really like the Powershares Clean Energy ETF (AMEX: PBW). This is basically an index of clean companies which serves to reduce the risks in entering this volatile and speculative sector. Although the expense ratio is rather high at .60%, it's the best option for investors not willing to spend too much time on this sector.

How to play Congress' environmental policymaking originally appeared on BloggingStocks on Mon, 23 Jul 2007 21:17:00 EST. Please see our terms for use of feeds.

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$100 oil prices?

Kevin Kelly — Mon, 23 Jul 2007 07:45:00 EST

Filed under: Analyst Reports, Columns, Commodities, Oil

Bloomberg is reporting that two oil "experts" are expecting $100 oil. One expert said $95 crude is "likely this year" and the other said we are "only a headline of significance" away from $100 oil. Interestingly, the article notes that a record number of contracts are outstanding with a bet on $100+ crude oil.

The situation in crude oil predictions makes is rather interesting but I wouldn't take these estimates as being very precise considering the fact that crude oil fundamentals merely fuel speculative buys or sells and the product doesn't really have a true value, because it doesn't generate cash flows.

That being said, I certainly wouldn't bet against crude oil or oil companies. The American people remain reliant on the precious commodity and I don't expect that to change anytime soon, even if alternative energy sources become popular.

Investors who believe that oil prices are going to rally have several options. In this situation I'd much rather purchase individual companies than the commodity simply because oil companies remain very cheap, even on oil prices as low at $50 per barrel. But investors do also have ETF choices such as iPath Crude Oil Total Return Index (NYSE: OIL) or United States Oil Fund (AMEX: USO) for the commodity itself, iShares Oil&Gas Exploration and Production (NYSE: IEO) for Oil&Gas companies, HOLDRS Oil Services Trust (AMEX: OIH) for services companies, or PowerShares Wilder Clean Energy Portfolio (AMEX: PBW) for investors who believe the United States is going to being making significant policy changes to strongly encourage alternative energy choices.

(Note: For ETF information I highly recommend ETF Connect)

While I can't tell you where oil is going or how it's going to move in the next few months, I think it's a pretty safe bet that the demand for crude oil is going to remain and American policymakers are going to be forced to start combating this somehow.

$100 oil prices? originally appeared on BloggingStocks on Mon, 23 Jul 2007 07:45:00 EST. Please see our terms for use of feeds.

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Cramer's very very odd "Green Investing" call: Borg Warner

Jon Ogg — Wed, 18 Apr 2007 19:35:00 EST

Filed under: After the Bell, Analyst Reports

On tonight's Mad Money, Jim Cramer noted Borg Warner Inc. (NYSE: BWA) as a company that can actually win on the "green movement." This is an auto parts and power trains applications company, certainly not something that would normally be thought of as a "green investment." But the company is working on developing more environmentally friendly products, and currently has a $1.7 billion backlog and the orders are still accelerating. Before you follow Cramer blindly, you should know that this may be true that the company has "lower emission" parts than others, but it looks like he is out picking the auto parts players that are still standing and close to highs more than a true "green investment" pick.

Once again, there are safer ways (safe being relative to diversification only) to play alternative energy ("alt-en"). A few names I have looked at for exposure to alternative energy and that I feel better about are actually what I call the "alt-en" ETFs, and these may offer you a safer mix of companies since some of the holdings are diversified and have many different operations. The PowerShares WilderHill Clean Energy ETF (AMEX: PBW), PowerShares Cleantech ETF (AMEX: PZD), and PowerShares WilderHill Progressive Energy Portfolio (AMEX: PUW) will all give some alternative-energy sector exposure that won't as easily rip apart your wallet if you make the wrong pick. ETFs will not give you the upside potential of a single speculative play, but if you've been doing this long enough, you already know how painful picking the wrong name in the right sector can be. Alt-en ETFs give you exposure to the sector without the company-specific risk.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Cramer's very very odd "Green Investing" call: Borg Warner originally appeared on BloggingStocks on Wed, 18 Apr 2007 19:35:00 EST. Please see our terms for use of feeds.

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Cramer's Alternative Energy Picks (2)

Jon Ogg — Tue, 17 Apr 2007 19:39:00 EST

Filed under: Analyst Reports

Tonight, Cramer continued his "going green" segment after changing his stance on alternative energy stocks last night.

One he really likes is First Solar (NASDAQ: FSLR), which can compete head to head with traditional power companies in the fairly near future; he's liked it since March and it's up 30% in that time. MEMC Electronics (NYSE: WFR) is the other one he likes because they make the silicon wafers for solar panels; this one is up 200% since Q3 2006 and he has been positive on this one all the way up because there is a silicon shortage and the company is well-positioned to capitalize on it. Cramer did say that these names are all up big big, so what you really want to do is look for these on pullbacks when they get cheaper.

There is a much safer way (safe is a "relative term" only) to invest in alternative energy, and you won't be risking it all in a single speculative name. A few names I have looked at for exposure to "Alt-En" and that I feel better about are actually what I call the "Alt-En" ETF's, and these may offer you a safer mix of companies since some of the holdings are actually diversified and have many different operations. The PowerShares WilderHill Clean Energy ETF (AMEX: PBW), PowerShares Cleantech ETF (AMEX: PZD), PowerShares WilderHill Progressive Energy Portfolio (AMEX: PUW) will all give some alternative energy sector exposure that won't as easily rip apart your wallet if you make the wrong pick. ETFs will not give you the upside potential of a single speculative play, but if you've been doing this long enough, you already know how painful picking the wrong name in the right sector can be. Alt-En ETFs give you exposure to the sector without the company-specific risk.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Cramer's Alternative Energy Picks (2) originally appeared on BloggingStocks on Tue, 17 Apr 2007 19:39:00 EST. Please see our terms for use of feeds.

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